A year ago, the big question for surveyors was how homes worth £2m or more would be valued for the new council tax surcharge. It now has an outline answer: the Valuation Office, part of HMRC, will use automated valuation models checked by professional valuers. But the details that decide whether the system is fair and workable are still to come. At the same time, a new equity loan scheme for first-time buyers and plans for upfront property information on every sale will lean on the same pool of qualified valuers. The Budget is the moment to join these up.
To support the property market effectively, the Budget should focus on:
Clear rules for the High Value Council Tax Surcharge
The consultation closed in July, and the government’s response is still to come. Homeowners and their advisers need to know the exact valuation date, what evidence will be accepted if they challenge a band and whether an independent RICS valuation will be taken into account. Homes valued close to £2m, or close to a band boundary, are where most disputes are likely to arise. Automated models work well where comparable sales are plentiful, but one-off properties need a valuer’s judgement, and the appeals process should be ready for that.
A joined-up plan for valuation capacity
The surcharge, the government’s plans to include a property condition report in upfront sales packs and any move towards a national database of property values all depend on qualified surveyors. The profession is already stretched. These policies should be planned as one capacity question.
Safeguards built into Your First Home
A 2.5% deposit means buyers will start with very little equity of their own, so an accurate, independent valuation at the outset matters more than ever. The government’s own evaluation of Help to Buy found customers’ understanding of the equity loan terms was weaker than other parts of the scheme. Clear information on how the loan is valued and repaid, and encouragement to commission an independent survey before reserving, would help buyers commit with confidence.
Clear rules, enough qualified people and good advice at the start are what allow new policies to work as intended, for homeowners, buyers and the wider market.
